Zynga Inc. develops, markets, and operates online social games as live services played on the Internet, social networking sites, and mobile platforms in the United States, Asia, and Europe. The company was founded in 2007 and is based in San Francisco, California.
ZNGA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ZNGA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Zynga Inc ranked in the 91th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2377%. The most interesting components of our discounted cash flow analysis for Zynga Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is -11.6; that's higher than merely 9.27% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than merely 20.39% of the free cash flow producing stocks we're observing.
Zynga Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ZNGA, try WIT, III, CAJ, IMBI, and ETSY.
Mobile game company Zynga Inc. (NASDAQ: ZNGA) has seen its stock gain 49% since the beginning of this year. The company registered strong results in the first half of 2020 benefiting from the COVID-19 pandemic-related restrictions and lockdowns that led to user growth and higher engagement. Strong first half During the health crisis, more people […]
Summary List Placement FarmVille is shutting down on Facebook by the end of the year, Zynga announced Monday. The company said the move is due to Adobe's decision to stop distributing and updating its Flash Player software. Facebook announced in June that it in turn would officially end support for Flash games on December 31, at which point FarmVille users will no longer be able to play the game. "We're aware that many of you have been with us since the very beginning, helping to build an incredible global community of players over the years who've enjoyed this game just as much as we have," Zynga said in a blog post. "For that we say thank you." Players will be able to make in-app purchases until November 17, per the company. After that date, the game's payment system will be deactivat...
Mobile gaming was in the VC spotlight last week, led by the $100M Series A raise by potential Zynga (ZNGA) competitor Playco, which came out of stealth with a $1B valuation in a round led by Josh Buckley (Mino Games founder and tech investor) and Sequoia Capital Global Equities. Playco,...